Last week long products market was downward and prices dropped by USD 89 per tonne for some sizes and made steel mills went out of market. But small traders were offering in the market. Prices were downward as debar price in Tehran market was cheaper than ex work prices.

Traders were worried about more drops in prices and besides they had inventories bought in lower prices. By Sunday, Khorasan Steel supplied in IME, so helped market to be a little calm. Base price for debar size 14-25 mm was USD 977 per tonne ex work.

Then by Monday after some rise in demand level in IME, market trend improved, yet cheap offers in Tehran retail market was influencing the trend but by end of the week steel mills didn't let prices drop and helped market to stabilize.

I-beam price declined by USD 70 per tonne at the beginning of the week and was stable at that rate. Angle and Channel started the week by USD 27 per tonne decline.

It can be noted that some part of price decrease in sections market during last week was corrections due to exchange rate changes in last weeks and just price bubbles. Traders worried about their investments value tried to by steel but after drops in exchange rate and market sluggish situation, the bubble burst and prices dropped suddenly.

Imported billet at prices of USD 888 per tonne can be realistic. So debar price shouldn't be lower than USD 1020 per tonne ex work. So retail price including 4% VAT shouldn't be lower than USD 1065 per tonne. These prices are based on exchange rate of USD 1 and IRR 12,260.

(Sourced from www.irsteel.com)